MONTH IN REVIEW
GO ONLINE
www.hotelowner.co.uk
START: THE MONTH’S NEWS BEGAN HERE
HOTEL INVESTMENT
UK hotel
transaction
volumes reached
£6.6bn in 2018
UK hotel transaction volumes reached
a total of £6.6bn in 2018, up 25% on
the 2017 total, according to global real
estate services provider Savills.
The group said the amount is
75.7% up on the long term average of
£3.78bn, and has been driven by an
“active portfolio market” and “increased
activity from overseas buyers”.
Overseas investors accounted for 54%
of total transaction volumes, up 20.5% on
2017 to reach £3.3bn in 2018. This is the
second highest amount ever invested in
the sector by the group, beaten only by
2015 volumes which reached £4.3bn.
The top three by country were Israel
(£1.1bn), France (£860m) and Canada
(£420m). On average, international
investors spent on average £76m per
deal; 3.4 times more than domestic
purchasers. UK purchasers accounted
for the lion’s share of deal count at 75%,
however this amounted to only 46% of
volumes at £2.99bn.
Additionally, portfolios accounted for
53% of the annual investment volumes
for 2018 at £3.5bn over 21 deals, which
Savills said is “significantly up” on the
16 portfolios traded in 2017 for a total
of £1.5bn.
Of the top 10 portfolios that
transacted in 2018, the average value
stood at £332m, 123% higher than in
2017, and the increased transaction
volumes in the sector were combined
with larger portfolio sizes. The top 10
deals averaged 2,000 keys per portfolio
– a 119% increase on 2017.
February 2019
1
2
HOTEL OPENINGS
Nadler Hotels
to open flagship
Covent Garden
hotel
Nadler Hotels will open its fifth
property, The Nadler Covent Garden,
on the corner of Bedford Street and the
Strand on 4 February 2019.
Overlooking the Strand, the
57-bedroom boutique hotel, minutes
from Charing Cross and Covent
Garden stations, will feature six levels,
including a reception and lounge on
the ground floor.
All bedrooms will offer free ultra-fast
Wi-Fi, free UK phone calls, pocket-
sprung beds, interactive TVs, work
desks with USB and power points,
spacious bathrooms and independently
controlled AC throughout.
Each room also features a bespoke
mini kitchen with microwave, sink,
fridge , BRITA filter water tap,
kettle, crockery and cutlery, and
a Nespresso coffee machine with
complimentary capsules.
Located in a 1907 Edwardian
property, many of the building’s original
features have been restored.
David JM Orr, CEO of Nadler Hotels,
said: “Our team is extremely excited
to open our newest hotel in the heart
of one of London’s most enchanting
destinations.
“As with all our hotels, our focus is to
provide guests with exceptional service,
comfort and convenience, and curate a
special connection with the local area.
The property will also feature many
beautiful design enhancements, which
we can’t wait to reveal to our guests.”
3
4
5
6
7
8
REFURBISHMENTS
Strand Palace
unveils next
stage of multi-
million pound
refurbishment
The Strand Palace has unveiled
plans for its ground floor
refurbishment project, part of a
multi-million pound investment that
has seen the hotel take onboard the
transformation of all 785 guestrooms
and the building’s façade.
Taking place from the new year
to early summer, the ground floor
project will see the reception,
concierge, restaurant and bar areas
transformed into a “stylish hub in the
heart of London”.
According to the hotel, the new
public spaces are designed as
“aesthetically intriguing salons”, and
have been designed as “flexible
lifestyle areas” where guests can
relax or work wherever they choose.
David MacRae, managing director
of the Strand Palace, said: “108 years
in the making, this new chapter [of
the hotel] is immensely exciting and
will truly reflect our grand name. Ever
since we first opened our doors in 1909,
the Strand Palace has put the guest
experience at the forefront of all we do.
“The new ground floor, along with
the new guestrooms is set to offer our
guests the best experience possible
right here in the heart of London, and
we are eager to reveal this project
during early Summer 2019.”
The investment of overseas
capital into UK hotels is
testament to the strength
of the sector even when facing
Brexit uncertainty
Tim Stoyle, head of UK hotels, Savills
www.hotelowner.co.uk
5